The study looked at how changes in monetary policy affect inflation and output in Armenia. They found that when the central bank tightens monetary policy, inflation decreases less than when it eases policy and output reacts in the opposite way. The researchers used econometric models to show that about half of this asymmetry can be explained by a small open economy model with sticky wages and investment adjustment costs. They also discovered that the importers' highly convex Phillips curve and nonlinearities in the internal economy play a significant role in these asymmetric responses.